How to Buy After-Market Car Warranties

Your car is probably the second-largest purchase you will make, and it's important to get the best protection you can. An after-market car warranty can be a cost-efficient way to make sure you won't be saddled with any large bills after an unexpected breakdown. However, there are many companies that will take your money and run, leaving you with little recourse.

Instructions

Difficulty: Moderately Easy

Compare After-Market Car Warranties Before You Buy

1. Determine the type of coverage you want. You might prefer a bumper-to-bumper warranty that covers most of the car's parts or a specialized warranty that covers the transmission, engine and other parts that could lead to big bills if they break.
2. Ask your credit union if it supplies after-market car warranties. This is one of the most secure ways to purchase a quality warranty, but it is often overlooked.
3. Contact your mechanic. Many dealerships offer warranties or work with preferred-warranty companies. If your mechanic has a working relationship with the warranty company, it could make your life easier when you need repairs.
4. Buy directly from the warranty company to get the best price.

Research the Company Supplying Your After-Market Warranty

5. Ask for the company's physical address and phone number. Check this information to make sure you are dealing with a legitimate after-market warranty business.
6. Ask how long the company has been in business. Companies with considerable histories are less likely to fold, which means they are more likely to be there when you need them.

Tips & Warnings

• Expect that a company may request an inspection of your car. If this occurs, the company just wants to make sure the car is in good condition and doesn't have any existing problems.
• Beware of companies that advertise by mail or email. It's easy to set up a slick website and toll-free telephone number, so don't be lulled into thinking you are safe giving your money to companies just because they are online.
• Do not buy an after-market car warranty from a company that does not have a satisfactory rating with the Better Business Bureau (see Resources below).
• Don't be surprised if the warranty offered by your dealership is more expensive. They often have higher markups than other warranties, but some people feel the security is worth the extra cost.